New Avenues towards Biotech Exits? Not Just Yet.
This article was originally published in Start Up
Executive Summary
With the IPO market as bad as it's ever been and acquisitions uncertain, VCs are looking around for alternative exits for their late-stage companies. One strategy being discussed: selling their late-stage start-ups, to PE-backed private-company acquirers -- acquirers which are by and large still to be created. These mega-startups would have access to plenty of capital (just not public capital) and would be looking to build businesses all the way to profitability, at which point these could be sold to someone else or go public in a very liquid offering. But while there's enough money in private equity to accomplish the strategy, it's hardly straightforward - and for now the talk of this alternative path to liquidity through private equity is just that: talk.